Ethereum (ETH) has been on a bull run recently, as the world’s second-largest cryptocurrency hits a 2-week high. This is coming as the token’s London hard fork is getting closer.
Also, investors’ appetite for ETH is fueled by anticipation of major protocol upgrades and Bitcoin price stability.
Ethereum grows as DeFi expands
On Sunday, the token hit $2,350, which is the highest it has been since June 18. However, the weekend trade volume remained low at only $18 billion.
Based on the new price of ETH, the token now has a market capitalization of $275 billion. Some market analysts believe the increased interest of the DeFi market, largely built on Ethereum, has had a massive impact on ETH. The DeFi market had a collective gain of 9% yesterday.
According to Coingecko data, the total market value of DeFi is $67.3 billion. On the other hand, Bitcoin has remained largely stable recently, gaining 2.6% to hit $35,600 on Sunday.
Last month, the bulls and the bears continued their battle of supremacy in the options market. Both of them were expecting a price fluctuation of Ether, which led to the options expiry on Friday. However, the bulls started gaining momentum when the price hit $2,200, and they have maintained an upper hand in the market since.
Anticipation of London fork affects market
Ethereum’s London hard fork is highly an anticipated event for crypto investors. It also has the much expected EIP 1559, which was rolled out on the Ropsten testnet on June 24. Now, the platform is expected to go full mainnet this month.
Several proposal upgrades have been done on the platform to make sure has a positive impact on Ether’s value. It will also transmit to the highly anticipated proof-of-stake consensus. Additionally, there will be a “scarcity feature”, which will cut the number of ETH tokens currently in circulation.